Under the Companies Amendments Act 2014 (“the Act”), as of 1 May 2015 all existing New Zealand companies will have 180 days to comply with a resident director requirement:(a) Specifically, that a New Zealand company must have a director who lives in New Zealand, or a director who lives in Australia who is also a director of an Australian company.The new resident director requirement affects to companies of all kind registered in NZ and present a big risk of loss for those companies also holding a Financial Service Provider license (FSP). If a resident director is not added within the time frame, the FSP Registrar will start the process of deregistration and the Bureau of Companies will close down the company. From previous experience with deregistration disputes, the FSP Registrar in 2014 started to question FSP companies that do not have operations in NZ, as it is the case of many companies that operate off of NZ shores. If real operations in NZ are not proved, the FSP Registrar will see no reason to keep granting a FSP license and will inform the directors of the company of the intent of deregistration. There are legal ways to avoid FSP deregistration and keep the FSP license but with the new requirement this is only possible if a resident director is included.
If you own a company in NZ that does not have a resident director, time is of essence. You need to act immediately to comply with the new resident requirement. We can help you with the new requirement. If your NZ company also hold a FSP license, this is even more critical. If no resident director is provided to satisfy the new law, you will loose the FSP license and your company will be closed down.
If you are going through a process of FSP deregistration, there are legal ways to dispute it and keep your FSP license. We can assist you with the process, but you must start regular operations in NZ like any other company and offer services according to the FSP license that you hold, have a bank account, rent an office and hire at least one employee to service clients. Fulton Abraham Sanchez, the founder of FAS CPA & Consultants of Miami, FL, is a Certified Public Accountant specializing in international business. You can email him to email@example.com.
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